Castle Rock approves up to $300,000 for planned AlloSource laboratory
The performance-based agreement offers fee rebates and job payments for a planned 26,000-square-foot facility, with the town’s assistance capped at $300,000.
Castle Rock Town Council unanimously approved a performance-based incentive agreement Sept. 15 for AlloSource to establish a life-sciences laboratory and office operation at 1585 South Perry Street. The town’s assistance is tied to permits, a certificate of occupancy and qualifying jobs.
The project is expected to occupy about 26,000 square feet and require roughly $5.5 million in laboratory build-out, according to the Town Council packet and a presentation during the council meeting. The agreement describes a second AlloSource advanced tissue-processing campus with cleanrooms, specialized mechanical systems, utilities and processing equipment.
The town may rebate up to 50% of the permit and other town fees AlloSource pays, with the rebate due after the project receives a certificate of occupancy. The combined fee rebate and job incentives cannot exceed $300,000.
AlloSource must obtain a tenant-improvement permit by the project’s first anniversary date to remain eligible for the fee rebate. The job incentive applies to qualifying full-time, on-site jobs created and retained at the location. Contract workers and fully remote employees do not qualify.
A qualifying position must be created by the fourth anniversary date and remain filled when the town makes the payment. Payments range from $2,000 to $3,000 per job, based on the employee’s Castle Rock residency and whether the position pays above or below the Douglas County average wage. AlloSource must submit certifications listing each qualifying employee’s title, salary, residency, hiring date and continued employment. Payments are made in installments, with the final schedule extending through the fifth anniversary.
Town economic-development staff said the first phase is expected to take about five years to reach roughly 100 employees. A second phase could add jobs over another approximately five years, bringing total employment to as many as 300, officials said. Those figures and the projected investment are expectations rather than requirements that the agreement sets for completing every planned expansion.
The town’s assistance is capped at $300,000 and payments depend on performance. Payments in fiscal years 2027 and later also depend on Town Council appropriations. If AlloSource defaults and does not cure the problem after notice, the town may deny incentive payments that would become due after the default. The agreement does not require repayment of incentives already paid if projected investment or employment later falls short.
AlloSource also planned to seek a separate incentive from Douglas County, according to the meeting discussion.